Clause 7

Part of Employment Bill [Lords] – in a Public Bill Committee at 12:00 pm on 14 October 2008.

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Photo of Lorely Burt Lorely Burt Shadow Minister (Business, Innovation and Skills), Chair of the Liberal Democrat Parliamentary Party 12:00, 14 October 2008

May I welcome you to the chair, Mr. Bercow? May I also congratulate the hon. Gentleman on his well deserved elevation? We welcome the clause, but we have expressed concerns about how financial compensation should be calculated, particularly interest on the total outstanding amount. It is welcome to hear the Minister talk about bank charges incurred as a result of not paying moneys in a timely way, but how feasible will it be for a tribunal to calculate the award? He rightly points out that many of those affected will not have been paid even the national minimum wage. Using bank charges to give fair restitution to employees might not help a considerable number of those affected. My hon. Friend the Member for Brent, East (Sarah Teather) has previously raised the issue of using interest charges. Where it is not possible to get an idea of bank charges—perhaps if the relevant person does not even have a basic bank account—could a similar interest charge payment be used to ensure that there is fair restitution?